India 10Y Yield at 3-Week High

2026-01-13 08:12 By Erika Ordonez 1 min. read

The yield on India’s 10-year G-Sec held around 6.6%, staying at a three-week high, amid uncertainty from fresh US trade risks.

Market focus turned to President Trump’s support for a Senate bill imposing up to 500% tariffs on countries importing Russian oil.

Combined with earlier Iran-related sanctions, the proposals raised concerns over India’s export outlook, with Congress MP Shashi Tharoor warning that effective tariffs could reach 75% for some sectors, prompting a more cautious stance toward government bonds.

Additionally, domestic liquidity tightened and state borrowing added supply pressure, with Indian states set to auction INR 268 billion this week as part of a record INR 8 trillion January-March issuance plan.

Foreign investor caution also limited buying interest in long-term debt, following prior deferrals of Indian bonds in global indexes.

Meanwhile, softer December inflation helped cap upside pressure on yields by limiting near-term RBI tightening expectations.



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